EAG grants UAE's request for observer status

Indore, Nov 29 (PTI) The Eurasian Group (EAG) on Friday said it has given the green light to the United Arab Emirates' (UAE) request for observer status.

The group, whose five-day 41st plenary meeting got over here, also decided to provide technical assistance to Iran so that it can come out of the Financial Action Task Force's (FATF) black list by following the FATF's standards.

Speaking at a news conference after the meeting ended, EAG chairman Yuri Chikhanchin announced that the UAE has joined the club of sixteen nations including Italy, US, Japan, Germany and France already enjoying observer status.

"The UAE officially requested us for observer status. That country's representatives have been attending our programs as special guests for two years. We have seen that they are active," said Chikhanchin.

"They deserved the observer status and this plenary has made a decision that they will be our observer and a full-fledged member in all our discussions. They just won't have the voting rights," he added.

Belarus, China, Kazakhstan, Kyrgyzstan, India, Russia, Tajikistan, Turkmenistan and Uzbekistan are the nine members of the EAG.

FATF has placed India in the category of 'regular follow-up' after assessing its efforts to implement measures to combat money laundering and terrorist financing. This is the highest rating given by this independent inter-governmental body.

This report of India was reviewed and approved during the EAG meet.

India will attract more international investment after bagging the highest rating tag, said the EAG chief.

Vivek Agarwal, head of the Indian delegation who took part in the EAG meeting, termed the inclusion of the UAE as an observer a very important decision.

Agarwal is additional secretary, Department of Revenue, Ministry of Finance, and director of India's Financial Intelligence Unit (FIU).

The UAE is currently a key member of the Middle East and North Africa Financial Action Task Force (MENAFATF), and in the coming days it may get the presidency of this organization, he noted.

"Therefore, UAE's joining EAG as an observer will enhance mutual cooperation between EAG and MENAFATF," he added.

The EAG members, meanwhile, also decided that the group should provide technical assistance to Iran so that it can come out of the FATF's black list by following the standards.

"Iran had sought technical help from EAG to follow FATF standards," said Agarwal.

The 42nd plenary of the EAG will begin in Moscow on May 26 next year. PTI HWP LAL KRK